A widely followed cryptocurrency analyst says Bitcoin (BTC) could ignite a rally like the one witnessed last cycle if history repeats itself.
The analyst, pseudonymously known as Kaleo, tells his 704,200 followers on the social media platform X that in 2020, Bitcoin sparked parabolic rallies to new all-time highs after the stock market had fully recovered from the COVID-19 crash and broke out to new record highs.
According to Kaleo, the S&P 500 stock index is “once again on the verge of breaking out to new all-time highs” following the correction that resulted from the imposition of tariffs on trade partners by the US.
“I believe we see history repeat itself, and as equities break out – Bitcoin does the same and significantly outperforms.”
As of Friday’s close, the S&P 500 is trading at 5,967 points, down by just about 3% from its record high of 6,147 points.
The pseudonymous analyst further says that, unlike in the previous cycles, Bitcoin is now attracting new sources of demand. According to Kaleo, this is a reason to “be more bullish” on the flagship crypto asset.
“This is the first cycle with spot Bitcoin exchange-traded funds (ETFs). Something we dreamed of in previous cycles, but never saw come to fruition. This allows potential investment of new capital into BTC at a rate we’ve never seen before.
Countries and corporations are starting to build BTC reserves. El Salvador, Tesla, Gamestop, and others are only the first dominoes to fall.
We finally have a pro-crypto president in the US pushing for pro-industry regulation.
The tech and infrastructure of the industry is also better than it’s ever been. [Decentralized Applications] DApps are more advanced, BTC is being used as a development layer, and the number of places that accept BTC as a form of payment is higher than it’s ever been before.”
Bitcoin is trading at $104,143 at time of writing, down by around 7% from the all-time high reached last month.
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